# Vaults > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary Usual Vaults are curated, managed yield strategies that allow bUSD0 holders to gain exposure to external DeFi yield opportunities while retaining bUSD0's underlying USUAL coupon rewards. Built on Lagoon Finance infrastructure, each Vault is managed by a curator responsible for strategy selection, epoch-based settlement, and fair valuation via oracle pricing. Vaults generate two revenue streams: bUSD0's native USUAL daily coupons plus external strategy returns. The DAO captures a baseline return (management fee up to a reference rate) and charges a performance fee on excess yield. Vaults extend bUSD0 composability into a managed, institutional-grade experience. *** ## Key Facts | Parameter | Detail | | ---------------------- | --------------------------------------------------------- | | Product type | Managed DeFi yield vaults | | Deposit asset | bUSD0 (converted 1:1 to USD0 on deposit) | | Infrastructure | Lagoon Finance managed vault framework | | Settlement | Epoch-based (curator-managed) | | Valuation | Oracle-priced fair valuation per epoch | | Entry/exit fee | None (standard deposit/withdrawal) | | Performance fee | 20% on returns above the reference rate | | Management fee | DAO retains yield up to the reference rate (e.g., 4% APR) | | USUAL coupon retention | Yes -- bUSD0 USUAL daily coupons continue accruing | | Maturity redemption | 1:1 via bUSD0 redemption at exit (June 2028 maturity) | *** ## Architecture ### Deposit Flow (Epoch-Based) 1. **Epoch initialization:** The first epoch begins at contract initialization. 2. **Deposit request:** Users submit a deposit request (e.g., 300 bUSD0) and transfer assets into a secure silo. bUSD0 is converted 1:1 into USD0 for deployment. 3. **Settlement:** The curator calls `settleDeposit`, which secures the deposited tokens and mints Vault shares at a fair valuation based on current oracle pricing. 4. **Optional cancellation (pre-settlement):** Before settlement, users can cancel the deposit request and recover their tokens from the silo. ### Withdrawal Flow (Epoch-Based) 1. **Withdrawal request:** Users submit a redemption request and place their Vault shares into a silo. 2. **Epoch transition:** The curator updates total assets, closing the current epoch and opening the next. 3. **Redemption settlement:** The curator executes `settleRedeem`, which burns Vault shares and transfers the equivalent bUSD0 plus accrued interest back into the Vault for user claiming. 4. **Claiming funds:** Users call `redeem` to transfer the redeemed assets to their wallet. *** ## Fee Structure | Fee Type | Description | Rate | | --------------- | ------------------------------------------- | ----------------------------- | | Management fee | DAO retains yield up to the reference rate | Reference rate (e.g., 4% APR) | | Performance fee | Charged on returns above the reference rate | 20% | | Entry fee | None | 0% | | Exit fee | None | 0% | The fee structure ensures the DAO captures a baseline return on Vault capital (supporting the insurance fund and treasury operations), while users benefit from outperformance above the reference rate. *** ## Available Vaults ### ustUSR++ Vault | Parameter | Detail | | --------------- | --------------------------------------- | | Strategy | stUSR (Resolv's staked USR token) | | Yield source | Delta-neutral cash-and-carry strategies | | Settlement | T+1 for RWA-related components | | Performance fee | 20% on yields above the reference rate | | Curator | Lagoon Finance curator | Additional vaults (Superstate, Syrup, Sky) are under development and will be documented upon launch. *** ## Dual-Yield Structure Vault participants receive two concurrent yield streams: | Yield Stream | Source | Notes | | ------------------------- | --------------------------------------------------------------------------- | ------------------------------------------------------------- | | bUSD0 USUAL daily coupons | bTOKEN bucket allocation (130,000 USUAL/day shared across all bUSD0 + ETH0) | Continues accruing while deposited in Vault | | External strategy returns | Vault-specific DeFi strategy (e.g., stUSR delta-neutral carry) | Subject to 20% performance fee on excess above reference rate | *** ## Holding bUSD0 vs. Depositing into a Vault | Feature | Hold bUSD0 Directly | Deposit into Vault | | ----------------------------------- | ---------------------------------- | ----------------------------------- | | USUAL daily coupons | Yes | Yes | | External strategy yield | No | Yes | | Smart contract risk | bUSD0 contract only | bUSD0 + Lagoon + strategy contracts | | Liquidity | Immediate (secondary market) | Epoch-based withdrawal | | DeFi composability | Full (Pendle, Morpho, Curve, etc.) | Limited to the Vault position | | 1:1 maturity redemption (June 2028) | Guaranteed | Via bUSD0 redemption at exit | *** ## Smart Contract Addresses Vault contracts are deployed via Lagoon Finance infrastructure. Specific contract addresses are published on the Usual Protocol documentation at deployment time. No centralized registry of Vault addresses is maintained in this factsheet due to the modular, curator-managed deployment model. *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------- | ----------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | | Smart contract risk | Exposure to Lagoon vault infrastructure and underlying strategy protocol contracts introduces additional attack surface | Usual Protocol has undergone 20+ audits by leading firms; Lagoon Finance contracts are independently audited | | Strategy risk | External strategies (e.g., stUSR) face market risks such as negative perpetual funding rates or adverse basis movements | Curator selects proven, audited strategies; diversification across strategy types | | Counterparty risk | Exposure to external trading platforms and custodians (e.g., exchange insolvency) | Use of institutional-grade counterparties; multi-layered counterparty risk framework informs strategy selection | | Liquidity risk | Epoch-based settlement can delay withdrawals relative to direct bUSD0 holdings | Deposits can be canceled before settlement; epoch durations are kept short | | Curator risk | Vault performance depends on curator strategy selection and execution quality | Curators are vetted; DAO governance can adjust parameters and curator appointments | | Opportunity cost | bUSD0 deposited in Vaults cannot be simultaneously used in other DeFi protocols (Pendle, Morpho, Curve) | Users should assess composability trade-off against expected Vault yield | *** ## Quick Links * Documentation: * Lagoon Finance: * Technical documentation: * Security contact: *** ## Disclaimer This factsheet is provided for informational purposes only and does not constitute financial, legal, or investment advice. All data is sourced from publicly available protocol documentation and governance records as of the date indicated above. Vault strategies, fees, reference rates, and available Vaults are subject to change through DAO governance and curator decisions. Past performance and historical data do not guarantee future results. Vault strategies introduce risk exposures beyond the conservative collateral profile of USD0's underlying T-Bill backing, which maintains zero tolerance for credit and FX risk and limits duration to under 0.33 years. Prospective participants should conduct independent due diligence and seek professional counsel before engaging with the protocol or depositing into Vaults. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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